Download Certain Steel Wheels from Brazil PDF

TitleCertain Steel Wheels from Brazil
LanguageEnglish
File Size7.0 MB
Total Pages170
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Page 1

CERTAIN STEEL WHEELS FROM BRAZIL

Determination of the Commission in
Investigation No. 701-T A-296
(Final) Under the Tariff Act
of 1930, Together With the
Information Obtained in the
Investigation

USITC PUBLICATION 2193.

MAY 1989

United States International Trad~Commission
Washington, DC 20436

Page 2

UNITED STATES INTERNATIONAL TRADE COMMISSION

COMMISSIONERS

Anne E. Bruns.dale, Chidrman
Ronald A. Cass, Vice Chairman

Alfred E. Eckes
Seeley G. Lodwick

David B. Rohr
Don E. Newquist

Staff assigned:

Debra Baker, Office of Investigations
Adam Topolansky, Office of Industries
Jeffrey Anspacher, Office of Economics
Chand Mehta, Office of Investigations

Craig McKee, Office of the General Counsel

Robert Carpenter, Supervisory Investigator

Address all communications to
Kenneth· R. Mason, Secretary to the Commission

United States International Trade Commission
Washin:;t~n. DC 20436

Page 85

A-17

Dexter Axle Division, Elkl}art, IN •. --Dexter is part of the Transportation
~roducts Group of Philips Industries, ·Inc. The principal use for standard
steel wheels manufactured by Dexter is on trailers and othe~ towed vehicle
running gear. Dexter does not sell standard steel wheels to the automotive
original equipment market or to the aftermarket. It is:an approved source of
aluminum wheels for * * *!

Ford Motor Co., Monroe, MI.--Ford Motor Co. manufactures standard steel
wheels for use in its own automotive manufacturing facilities.

General Motors Corp. , Warren, MI.--General Motors, like Ford; uses all of
its production:of standard steel wheels in the production of automobiles- and
light trucks.

Kelsey-Hayes Co·., Romulus, MI.--Kelsey-Hayes, the petitioner in this
investigation, is alleged to be the world's largest manufacturer of wheels for
cars and light trucks. 11 In addition to sta:ndatd steel wheels, ·Kelsey-Hayes
produces custom steel and aluminum wheels domestically; in 1988, these wheels
accounted for * * * and * * * percent, respectively, of its total sales value
(for reported wheels). Other products· manufactured include d:i..sc and drum brake

·systems and electromechanical" sensors and actuators. Kelsey...:Hayes imports
steel wheels from * * * and aluminum wheels from * * *· It is an approved
source for * * *· In December 1986, Kelsey-Hayes was acquired by Freuhauf
Holdings~ Inc.~ now Fre~hauf Corp., of ~ichigan. ],./ - ·

Motor Wheel Corp., Lansing, MI.--Motor Wheel produces standard steel
wheels at its_ three domestic plants and in Chatham, Ontario, Canada. * * * of
its wheels are top-coat painted. It has been the leading supplier of highly-
styled painted and chrome wheels to the original equipment (OE) market for the
past 25 years. l/ Motor Wheel is an approved source for * * * In February
1987, its senior management bought Motor Wheel from Goodyear Tire and Rubber
Co. of Akron, OH.

NI Industries, Brea, CA.--NI Industries is a * * * subsidiary of Masco
Industries. NI Industries has steel wheel plants in Brea, CA, and Cambridge,
Ontario, Canada. The Ontario plant started production of heavy-duty truck
wheels and rims 22.5 inches and 24.5 inches in diameter in September 1988. NI

11 Kelsey-Hayes is affiliated with the following wheel manufacturing operations
outside the United States: Kelsey-Hayes Canada (Canada, steel wheels, * * *-
percent ownership); Kelsey-Hayes de Mexico (Mexico, steel and aluminum wheels,
***-percent ownership); Rudeveca (Venezuela, steel and cast aluminum wheels,
***-percent ownership); F.P.S. Italy (Italy, cast aluminum wheels, * * *-
percent ownership); F.P.S. Brasil (Brazil, cast aluminum wheels, ***-percent
ownership by F.P.S. Italy); K-H de Espana (Spain, cast aluminum wheels, * * *-
percent ownership); F.A.S.S. (France, cast aluminum wheels, * * *-percent
ownership). * * * ·
11 A May 9, 1989, article in the Washington Post stated that Fruehauf sold
Kelsey-Hayes to·Varity Corp. of Toronto, Canada on May 8. Varity is a leading
manufacturer of agricultural tractors. The sale, which involves exchanges of
stock between Freuhauf and Varity, is subject to approval from stock and bond.
holders and the Securities and Exchange Commission.
ll Transcript of the hearing, p. 32.

Page 86

- . ··~:. . -.· '.'

A-18

Industries is * * * of steel rims for the custom wheel industry. In 1988, rims
accounted for*** percent of its total sales value (of reported products).
It is' an approved supp~ier of standard steel wheels for * * *·

Topy Corp., Frankfort, KY.--Topy is a joint venture between Topy
·Industries, Ltd., headquartered in Japan(*** percent), and Topy
International, Elk Grove; IL(*** percent). Topy began producing standard
steel wheels in its Frankfort plant in 1986. * * * Topy is an approved
source for * * *

Other producers.--Can-Am Industries (Quincy, IL) afid Unique Stamping and
Coating (Santa Fe Springs, CA) sell #customized" wheels that are used as
original equipment on trailers. Unique Stamping and Coating also supplies
approximately * * * to * * * percent of the steel discs sold in the United
States. Saber Manufacturing Co., I~c. (Little Rock, AR) primarily sells basic
standard steel wheels to trailer manufacturers and to the aftermarket. There
~re believed to be additional· manufacturers of wheels for trailers, mobile
homes, and agricultural equipment.

The majority of the manufacturers that produce only custom steel or
aluminum wheels are located in California. * * * are approved to sell aluminum

.wheels to the automotive industry. * * *

Information on 1988 production and shares of production of standard steel
wheels, custom steel wheels, and aluminum wheels is shown in table 2.

Page 170

B-30

Table F-1
Standard steel wheels: Shipments reported by producers and importers of wheels
to OEMs during 1986-88

* * * * * * *

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